The TOM Challenge: TOM Winners and Losers Assignment

December 09, 2015

Read The Full Prompt

The basic thesis of the TOM course is that company performance is driven by the alignment between the company’s business model and operating model. As defined in the “Introduction to the RC TOM Course” note, a business model is defined as how the firm creates and captures value, and an operating model refers to the processes that transform a firm’s assets (e.g., capital, labor, intellectual property, equipment, etc.) into valuable actions.

Please identify one organization in the global economy that you think is highly effective (or one that is highly ineffective) at driving alignment between its operating and business models

  1. Did you choose the company as an example of effectiveness or ineffectiveness? Why?
  2. Describe the company’s business and operating models. What is interesting about them?
  3. Do the models align and support each other?  How?  What specific features of the operating model are designed to create and sustain competitive advantage?  What features of the business model leverage unique capabilities of its operating model?  What are the implications for performance?

Submitted (929)

Couche-Tard: Conquering Convenience
Nino
Last modified on December 6, 2015 at 11:32 am
Alain Bouchard built the world's largest convenience store chain (that nobody has ever heard of), by focusing on industry consolidation and best-in-class operations
Not just for gamblers: The Cosmopolitan Las Vegas
Aditya
Last modified on December 9, 2015 at 7:43 pm
The Casino business, restaurants and bars
Danaher and its Business System – A Model of Excellence
Ben Fehr TOM Challenge - The Danaher Way
Posted on December 8, 2015 at 9:05 pm
While not groundbreaking today, Danaher's operating model in the 1980's sought to ensure maximum effectiveness and efficiency. By aligning its operating model and business model since its early days, Danaher today has become a $19B industry superstar.
Planet Labs – Satellite Imagery to Better Humanity
Ben Cohen
Last modified on December 9, 2015 at 6:01 pm
Planet Labs utilizes cutting-edge satellites to take daily pictures of Earth, enabling not just business but positive social change.
SpaceX: Revolutionizing Space Travel
Merry Batter
Posted on December 9, 2015 at 4:27 pm
How Elon Musk is colonizing Mars one operating efficiency at a time...
Apple – AppStore, Industrial Design, Innovation, and Supplier Leverage
Allen Liu
Posted on December 9, 2015 at 11:30 pm
Background: 1997 marked the year Steve Jobs returned to Apple after being forced to leave the company in 1985 due to disappointing Macintosh sales. [1] With his return, along with the promotion of Jonathan Ive as senior vice president of industrial design, [...]
Trader Joe’s – Alignment Under Secrecy
BP
Last modified on December 3, 2015 at 11:09 pm
Trader Joe's leverages secrecy to execute on their promise of great food + great prices
Xiaomi – Mobile Disruptor from China
LucyWang
Posted on December 9, 2015 at 3:37 pm
How did Xiaomi become the #3 smartphone manufacturer worldwide in just three years?`
FedEx Ground’s Remarkable Ride to the Top
ErikR
Posted on December 8, 2015 at 3:11 pm
Over the last 15 years, FedEx Ground has grown from nothing, into being widely viewed as the preeminent ground courier transportation provider. This success is largely attributable to the unique operating decisions the company has made.
SoftBank: Beyond telecommunications
skang
Last modified on December 9, 2015 at 4:04 pm
Netbatsu strategy, a digital age variation on the old Japanese zaibatsu, or industrial conglomerate.
Pandora: Pay Us to Not Annoy You
Brandon K
Last modified on December 8, 2015 at 9:08 pm
Pandora falls behind competition on unique operating model.
Schindler – A Captive Audience?
Alissa Davies
Posted on December 7, 2015 at 7:09 pm
Company Overview Schindler was founded in Switzerland in 1874 and is a leading global provider of elevators and escalators. It operates in more than 100 countries and has 54 000 employees. Business Model Schindler’s business model is split into New [...]
BlackBerry: How to Destroy $75 Billion of Value
Vitali
Last modified on December 6, 2015 at 11:53 am
BlackBerry is an example of how ineffective alignment between business and operating models can destroy company performance. How did a company that essentially invented the modern smartphone and later led the smartphone market find itself on the brink of failure?
Ryanair: Low prices without “unnecessarily pissing people off”
Andy
Last modified on December 5, 2015 at 11:34 pm
Ryanair is Europe’s largest low-fare airline and its focus on having the lowest possible cost also made it one of the most profitable airlines in the world. However, those profits came at the expense of, in Ryanair’s CEO own words, [...]
Build-A-Bear Workshop: Smarter Than Your Average Toy Store
Charlie Hymen
Posted on December 8, 2015 at 8:47 pm
While toy stores sell products and movie theatres sell entertainment, Build-A-Bear sells both through aligned business and operating models and an innovative, process-driven approach that appeals to Mama Bears, Papa Bears, Sister Bears, and Brother Bears alike.
Texas Roadhouse: The Recipe for A Successful Affordable Steakhouse
RGO
Posted on December 8, 2015 at 6:49 pm
Texas Roadhouse’s employee incentive program, menu-pricing strategy, and commodity hedging allow the restaurant to draw more traffic and capture more profits than its casual dining competitors.
The recipe to Chipotle’s success
Jackie
Posted on December 9, 2015 at 6:00 pm
A look into how Chipotle has invented a unique operating model to deliver fast, affordable, high-quality Mexican food.
Barry’s Bootcamp: The Hardest and Most Effective Workout in the World
Napat Thavisin
Posted on December 8, 2015 at 9:38 pm
From a boutique West Hollywood fitness class to a global lifestyle brand
Birchbox: opening new paths for beauty & e-commerce
MC
Last modified on December 9, 2015 at 4:03 pm
Birchbox = 'the smartest way to shop for beauty and grooming products.' We're opening up its secrets to success.
Yoox: The Internet of Luxury
Aparna
Posted on December 9, 2015 at 11:29 pm
At its heart, and in its own words, Yoox is a “global logistics structure that has been specifically customized for fashion e-commerce.” An analysis of how Yoox.com was able to take luxury fashion online, tailor its offering to dozens of [...]
Eat, Shop, and Learn: How Eataly Became a Cash Cow
Lauren Edwards
Last modified on December 5, 2015 at 11:25 am
Oscar Farinetti's innovative take on how to bring Italian gastronomy to every corner of the globe proves to be a winning recipe
Ryanair’s low-cost 30th birthday
Peter Mannion
Last modified on December 9, 2015 at 12:31 am
Ryanair, the Dublin-based low cost carrier (LCC), celebrates its 30th birthday this year. Though some may scoff at the company’s claim to be “Europe’s favorite airline,” the numbers are hard to dispute. This year the airline will carry 105m customers [...]
Thor Urbana Capital: brick and mortar in the online era
Sgonzalez
Last modified on December 9, 2015 at 10:44 pm
Delivering exciting experiences and emotional connections through real estate
In-N-Out isn’t your ordinary Fast Food Burger Chain
Awhittemore
Last modified on December 6, 2015 at 6:14 pm
In-N-Out has been a private, family owned business since its first restaurant opened in Baldwin Park, CA in 1948. Today, the burger chain operates in six states (CA, NV, UT, TX, OR, AZ) with over 300 restaurants and estimated revenues [...]
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